Extreme weather contributing to higher insurance costs

Extreme weather contributing to higher insurance costs

Extreme weather events, such as wildfires, storms, hurricanes, and flooding, are on the rise and wreaking havoc around the world. These disasters not only have devastating effects on the environment and communities, but they are also having significant impacts on the insurance industry.

As seen in the UK, the increasing frequency and severity of extreme weather events have pushed up costs for insurance companies. With more homes and properties being damaged or destroyed by these natural disasters, insurance providers are facing higher payouts for claims.

This rise in insurance costs is not just limited to the UK, but is a global issue as extreme weather events become more common. According to experts, climate change is playing a major role in the increase of these events, leading to more frequent and severe storms, wildfires, and flooding.

As a result, insurance premiums are being adjusted to reflect the increased risks associated with extreme weather. This means that individuals and businesses may see higher insurance prices in order to adequately cover the potential damages that can result from these events.

It is clear that the impacts of climate change are being felt across all sectors, including the insurance industry. As extreme weather events continue to rise in frequency and severity, it is more important than ever for individuals and communities to take action to mitigate these risks and adapt to a changing climate.

Watch the video by BBC News

Video “Extreme weather pushing up insurance prices | BBC News” was uploaded on 07/10/2024 to Youtube Channel BBC News